33.2 C
August 7, 2022

Roubini: Italy May Need to Exit Euro

Italy may need to exit the euro zone and revert to its own national currency to resolve its debt crisis, thereby forcing the break-up of the euro zone, Nouriel Roubini wrote in an opinion piece in the Financial Times on Friday, cnbc.com reports. Roubini argued that with yields on its sovereign debt hovering around the 7 per cent mark, market access may become limited for Italy. A forced restructuring of its debt could help solve some of its issues, but it would not address other issues that hamper the Italian economy such as a lack of competitiveness, a large current account deficit and lower gross domestic product, he wrote. Unless a lender of last resort for “stressed” countries within the euro zone can buy the sovereign debt, the higher yields would reach unsustainable levels, Roubini argued.

Related posts

Over 300 Arval clients since its emergence on the Romanian market seven years ago

Nine O' Clock

Consumer eggs produced by Agroland will enter the shelves of Mega Image


Budget deficit up to 1.2 pc of GDP

Nine O' Clock